Deepwater Horizon oil rig continues leaking oil as claims rise

Owner BP expects its self-insurance and captive insurance to cover costs associated with a massive clean-up effort, which has been said to be costing $6m a day.

Reinsurance sources have estimated that the total claims from the disaster could reach close to $1bn, much of which is expected to be covered in Lloyd's and Bermuda.

The giant oil slick from the leak resulting from the explosion could hit the fragileUS Gulf Coast shoreline this weekend as the White House and Congress launched separate probes into the worst offshore incident in nearly a decade.

Operator Transocean has said the rig is insured for $560m including total loss and wreck removal.

It was the worst oil rig disaster since 2001, when a rig operated by Petrobras PETRA4.SA off the Brazilian coast exploded and killed 11 workers

However, the spill is not comparable with the infamous Exxon Valdez disaster, which spilled about 11 million gallons (50 million litres) of oil into the Prince William Sound in Alaska when it ran aground in 1989. BP's well is spewing about 42,000 gallons (190,900 litres) of oil a day into the ocean, the Coast Guard estimates according to newswire Reuters.

Events

The Jackson Reforms have taken effect, and some predictions for the claimant solicitor world are decidedly grim. The reforms call for increased settlement speed and new, lower fixed fees, compressing solicitor profitability substantially.

EIOPA has published its final guidelines for the phasing-in of the Solvency II regime, with the regulations announced to come into force on 1st January 2016. Prior to that date, European insurers have two other deadlines to meet a pre-application to the relevant regulator must be submitted in or around September 2014; and a full application to the relevant regulator must be submitted by 1st June 2015